Are you really self-employed – the sequel
Following on from our article on self-employment in our July newsletter comes a case from the Tax Tribunal. We normally don’t go into details of individual cases but this one is highly relevant. In this particular case, although there was no written contract with the workers in question, the employer did have a code of practice indicating that if any of their workers became unavailable, they should find someone else from their employment pool to take their place – and that any replacement must be approved by the business. Although little or no supervision or control was made by the business as to how the alleged “agency workers” actually worked, the tax tribunal felt that the question of substitution was critical.
Our advice therefore, if you’re still concerned as to whether or not your workers are actually self-employed, is to include a clause in their contract of employment allowing them to substitute an alternative worker if they are unavailable for any reason. But make sure that this is a genuine right – best of all, ask for details of any potential substitutes now, so you can vet them now to see if they’re suitable to avoid problems later.
If you’re still not completely sure whether your employees are self-employed or not, have a look at the HMRC website or for further help, don’t hesitate to contact our experienced employment law solicitors by calling 01722 422300.